2006 (4) TMI 271 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 6/2002 for exemption of Solar Power Traffic Signal Systems and Solar Street Lights.

Analysis:
The case involved an appeal against the Commissioner of Central Excise (Appeals) regarding the eligibility of Solar Power Traffic Signal Systems and Solar Street Lights for exemption under Notification No. 6/2002. The appellants argued that since these systems predominantly operate using solar power, they should be covered under the exemption for solar energy devices/systems. They contended that the generic description of "solar power system" in the notification should include these items as they utilize solar photo-voltaic cells to convert solar energy into electrical energy. The appellants also cited relevant Apex Court decisions to support their argument that the notification aims to promote the use of non-conventional energy and should be interpreted accordingly.

The appellants further relied on legal principles such as the doctrine of Ejusdem generis and Noscitur A Sociis to interpret the notification's scope and meaning. They argued that denying the benefit of the notification to Solar Power Traffic Signal Systems and Solar Street Lights would go against the intention of encouraging non-conventional energy use. The appellants emphasized that the lower authorities' strict grammatical interpretation should not prevail over the notification's spirit and purpose.

Upon careful consideration of the case records and the relevant notification entries, the Tribunal found that the impugned goods, Solar Power Traffic Signal Systems, operate by converting solar energy into electricity, making them eligible as "other applications" under the notification. The Tribunal reasoned that solar energy is a form of non-conventional energy, and the impugned goods align with the list of applications specified in the notification. Applying the doctrine of Ejusdem generis, the Tribunal concluded that the benefit of the notification should extend to the Solar Power Traffic Signal Systems and Solar Street Lights. Therefore, the Tribunal allowed the appeals, granting consequential relief to the appellants.

In summary, the Tribunal's decision centered on interpreting the notification in a manner that aligns with the promotion of non-conventional energy use, emphasizing the practical application and purpose of the exemption provisions rather than a strict grammatical reading. The case highlights the importance of considering the broader context and intent behind legal provisions when determining their applicability to specific situations.